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"Currency Wars "
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"EXTEND & PRETEND "
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"SULTANS OF SWAP"
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ACT I
Sultans of Swap: Smoking Guns!

 

"EURO EXPERIMENT"
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EURO EXPERIMENT: German Steel or Schmucks?

"UR all PIGS from HELL

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"EXTEND & PRETEND"

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Published November 2009


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"INNOVATION"
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INNOVATION: America has a Structural Problem!

 

"PRESERVE & PROTECT"
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PRESERVE & PROTECT:  The Jaws of Death

 

 

2012 ANNUAL THESIS REPORT

COMPLIMENT YOUR 2012 THESIS - REVISIT:

"THE REAL INFLATION" with JOHN WILLIAMS ShadowStats.com Global Insights >>

What Are Tipping Points?
Understanding Abstraction & Synthesis
Global-Macro in Images:  Understanding the Conclusions

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CRONY CAPITALISM

2012 ADDITIONAL SUPPORTING MATERIALS IN 2012
Guest Interviews  

 

 

 

Theme Articles  

TBA


 

2012 THEMES - PUBLICALLY AVAILABLE COMMENTARY: ARTICLES & REPORTS

  1. BANKING & CREDIT CRISIS II -- "FINANCIAL REPRESSION"
  2. CORPORATOCRACY -- "CRONY CAPITALISM"
  3. WEST- EAST POWER SHIFT -- "GLOBAL RE-BALANCING"
  4. SOCIAL UNREST -- "AGE OF RAGE"

 

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UnderThe Lens Presentations

 

Public Materials of Interest
VIDEOS

02/29/12

CRONY CAPITALISM

CHAIRMAN BEN BERNAKE'S HUMPHREY HAWKINS TESTIMONY

Ron Paul To Ben Bernanke: "People Lose Trust In The Government Because You Lie To Them About Inflation"

 

01/24/12

CRONY CAPITALISM


Crony Capitalism and the Entitled Class of Wall Street Financiers; Bill Moyers Interviews David Stockman, Ronald Reagan's Budget Director

David Stockman on Crony Capitalism from BillMoyers.com on Vimeo. 

 
Public Materials of Interest
AUDIOS


 

READING MATERIALS
IMPORTANT URL LINKS
CRONY CAPITALISM

ITS THE BANRUPTCY STUPID: Destroy the Leverage in Bankruptcy

Global Financial Crisis Management In Three Easy Charts 06/26/12 Housing Story

CRONY CAPITALISM

CRONY CAPITALISM: Social Unrest Lies Ahead

The Chart That Scares The "1%" The Most 06/20/12 Zero Hedge

Capitalists have been gripped by 'systemic fear' making them worry not about the day-to-day movements of growth, employment, and profit, but about 'losing their grip'. An interesting recent article by the Real-World Economics Review on the Asymptotes of Power focuses on the fact that the capitalists are forced to realize that their system may not be eternal, and that it may not survive in its current form. The authors fear that, peering into the future, the '1%' realize that in order to maintain (or further increase) their distributional power (their net profit share of national income - which hovers at record highs) they will have to unleash even greater doses of social 'violence' on the lower classes. The high level of force already being applied makes them increasingly fearful of the backlash they are about to receive (think Europe to a lesser extent) and nowhere is this relationship between the wealthy capitalists and social upheaval more evident than in the incredible correlation between the Top 10% share of wealth and the percent of the labor force in prison. In order to have reached the peak level of power it currently enjoys, the ruling class has had to inflict growing threats, sabotage and pain on the underlying population.

During the 1930s and 1940s, this level proved to be the asymptote of capitalist power: it triggered a systemic crisis, the complete reordering of the U.S. political economy, and a sharp decline in capitalist power, as indicated by the large drop in inequality.

As we can see, since the 1940s this ratio has been tightly and positively correlated with the distributional power of the ruling class: the greater the power indicated by the income share of the top 10 per cent of the population, the larger the dose of violence proxied by the correctional population. Presently, the number of ‘corrected’ adults is equivalent to nearly 5 per cent of the U.S. labour force. This is the largest proportion in the world, as well as in the history of the United States.

(1) they all adhere to the two dualities of political economy: the duality of ‘politics vs. economics’ and the duality within economics of ‘real vs. nominal’; and (2) they all look backward, not forward.

As a consequence of these common foundations, all existing explanations, regardless of their orientation, seem to agree on the following three points:

  1. The essence of the current crisis is ‘economic’: politics certainly plays a role (good or bad, depending on the particular ideological viewpoint), but the root cause lies in the economy.
  2. The crisis is amplified by a mismatch between the ‘real’ and ‘nominal’ aspects of the economy: the real processes of production and consumption point in the negative direction, and these negative developments are further aggravated by the undue inflation and deflation of nominal financial bubbles whose unsynchronized expansion and contraction make a bad situation worse.
  3. The crisis is rooted in our past sins. For a long time now, we have allowed things to deteriorate: we’ve let the ‘real economy’ weaken, the ‘bubbles of finance’ inflate and the ‘distortions of politics’ pile up; in doing so, we have committed the cardinal sin of undermining the growth of the economy and the accumulation of capital; and since, according to the priests of economics, sinners must pay for their evil deeds, there is no way for us to escape the punishment we justly deserve – the systemic crisis.

Although there are no hard and fast rules here, it is doubtful that this massive punishment can be increased much further without highly destabilizing consequences. With the underlying magma visibly shifting, the shadow of the asymptote cannot be clearer

CRONY CAPITALISM

CRONY CAPITALISM - Insideous, Controlled, Relentless and Stealth Changes

Regulators Weigh Easing of Global Bank Rules 06/15/12 WSJ

International regulators are poised to ease a core element of new banking rules that were designed to improve the safety of the financial system, with some regulators fearing that plowing ahead with the tougher requirements could exacerbate the current European crisis . Among the planned changes, one would allow a wider variety of assets—such as gold and equities—to count toward banks' liquidity buffers, according to people involved in the talks.

a growing number of central bankers and regulators have come to accept industry arguments that in the current environment, it will be nearly impossible for banks to comply with the liquidity rules. Further, they say, forcing them to try could precipitate dangerous cash crunches at some institutions.

The changes are likely to be welcomed by the banking industry and some policy makers. But some outside experts say it could be a mistake to loosen the rules. The rule in question is known as the "liquidity coverage ratio." It will force banks to hold large enough quantities of certain assets, such as cash and government bonds, that would enable banks to weather a theoretical 30-day liquidity crisis. The idea is that some assets are sufficiently liquid that, even in the heat of a crisis, banks will be able to sell them on the market to drum up cash. The rule is supposed to take effect in 2015.

Slobbering Senators Woo Dimon While They Gut Dodd-Frank 06/17/12 Bloomberg

Neither Dodd-Frank nor the Volcker Rule nor bank-capital requirements nor the other regulations that will ultimately get written -- with a lot of help from Wall Street’s lawyers and lobbyists -- will change the behavior of the hundreds of thousands of bankers, traders and executives who work on Wall Street and who do the things every hour of every day that slowly but surely have had a tendency to lead to the collective action that cause financial crises. People are pretty simple: They do what they are rewarded to do. At this very moment on Wall Street, smart, well-educated people are being rewarded to take big risks with other people’s money. Because that’s what they get paid to do -- often in the millions of dollars each year -- it is hardly surprising that they continue to do it. Need some evidence? President Barack Obama signed the 2,300-page Dodd-Frank law nearly two years ago, in July 2010. At the time, with great bravado, he said, “These reforms represent the strongest consumer financial protections in history. In history.”

CRONY CAPITALISM

CRONY CAPITALISM - Insideous, Controlled, Relentless and Stealth Changes

Regulators Weigh Easing of Global Bank Rules 06/15/12 WSJ

International regulators are poised to ease a core element of new banking rules that were designed to improve the safety of the financial system, with some regulators fearing that plowing ahead with the tougher requirements could exacerbate the current European crisis . Among the planned changes, one would allow a wider variety of assets—such as gold and equities—to count toward banks' liquidity buffers, according to people involved in the talks.

a growing number of central bankers and regulators have come to accept industry arguments that in the current environment, it will be nearly impossible for banks to comply with the liquidity rules. Further, they say, forcing them to try could precipitate dangerous cash crunches at some institutions.

The changes are likely to be welcomed by the banking industry and some policy makers. But some outside experts say it could be a mistake to loosen the rules. The rule in question is known as the "liquidity coverage ratio." It will force banks to hold large enough quantities of certain assets, such as cash and government bonds, that would enable banks to weather a theoretical 30-day liquidity crisis. The idea is that some assets are sufficiently liquid that, even in the heat of a crisis, banks will be able to sell them on the market to drum up cash. The rule is supposed to take effect in 2015.

Slobbering Senators Woo Dimon While They Gut Dodd-Frank 06/17/12 Bloomberg

Neither Dodd-Frank nor the Volcker Rule nor bank-capital requirements nor the other regulations that will ultimately get written -- with a lot of help from Wall Street’s lawyers and lobbyists -- will change the behavior of the hundreds of thousands of bankers, traders and executives who work on Wall Street and who do the things every hour of every day that slowly but surely have had a tendency to lead to the collective action that cause financial crises. People are pretty simple: They do what they are rewarded to do. At this very moment on Wall Street, smart, well-educated people are being rewarded to take big risks with other people’s money. Because that’s what they get paid to do -- often in the millions of dollars each year -- it is hardly surprising that they continue to do it. Need some evidence? President Barack Obama signed the 2,300-page Dodd-Frank law nearly two years ago, in July 2010. At the time, with great bravado, he said, “These reforms represent the strongest consumer financial protections in history. In history.”

CRONY CAPITALISM

CRONY CAPITALISM - The Media Complex

These 6 Corporations Control 90% Of The Media In America 06/14/12 Frugal Dad

This infographic created by Jason at Frugal Dad shows that almost all media comes from the same six sources. That's consolidated from 50 companies back in 1983. NOTE: This infographic is from last year and is missing some key transactions. GE does not own NBC (or Comcast or any media) anymore. So that 6th company is now Comcast. And Time Warner doesn't own AOL, so Huffington Post isn't affiliated with them. But the fact that a few companies own everything demonstrates "the illusion of choice," Frugal Dad says. While some big sites, like Digg and Reddit aren't owned by any of the corporations, Time Warner owns news sites read by millions of Americans every year.

CRONY CAPITALISM

JP MORGAN - Better Odds Than A Casino!

Ahead Of Tomorrow's Dimon Hearing, Presenting JP Morgan's 93.5% Historical Winning Trade Perfection 06/13/12 Zero Hedge

Can someone explain how it is possible that a firm that over the past 9 quarters has disclosed a total of 41 days on which it has lost money trading, and 546 days on which it was profitable, or a 93.5% win rate of the total 587 days in the past 2 years and 1 quarter.

CRONY CAPITALISM

CRONY CAPITALISM - The Illusion of Choice!

These 10 Corporations Control Almost Everything You Buy 04/25/12 BI

CRONY CAPITALISM

CRONY CAPITALSIM - The Bilderberg "Old Boys" Network

This Chart Shows The Bilderberg Group's Connection To Everything In The World 06/12/12 BI

The Bilderberg Group is 120-140 powerful people who meet each year to discuss policy. The meetings are closed to the public. This graph we found on Facebook shows the members' connections to a ton of corporations, charities, policy groups and media. Everyone from Eric Schmidt to George Soros is a member. There are tons of conspiracy theories about the group, including that they control the world economy. We took the findings with a grain of salt--after all, it's easy to trace an individual to a corporation and the graph doesn't specify what influence the member wielded.

But perhaps it's a compelling argument for why the meetings should be public.

Click to Enlarge

CRONY CAPITALISM

CORPORATE PROFITS - Doesn't Get Any Better Than This (and still be legal?)

THE MOST IMPORTANT STORY IN AMERICA: Family Net Worth Collapses 40% In 3 Years 06/12/12 BI

Corporate profits just hit another all-time high. These are more than just "up". They are through the roof!

Corporate profits as a percent of the economy also just hit an all-time high. Profits are now VASTLY higher than they've been for most of the last half-century

CRONY CAPITALISM

CBO - Whistleblower

Explosive Letter About A Coverup At The CBO 03/16/12 BI

CRONY CAPITALISM

JP MORGAN - Whistleblower

JP Morgan Whistleblower States JP Morgan Manipulates Silver & Gold Futures 03/15/12 Silver Doctors - A JP Morgan insider has released insider information on the CFTC's website regarding the manipulation of gold and silver futures by JP Morgan that he calls 'damning at best for JP Morgan', also states that JPM is fearful of a cascading credit event being triggered in Greece as JPM has hidden derivatives in excess of $1 TRILLION USD, and confirms that JPM is involved with hiding client assets from MF Global.

GOLDMAN SACHS - "MuppetGate" Whistleblower

Why The Hottest Attack On Greg Smith Is Total Nonsense 03/15/12 BI

Goldman debt deal that comes due in 10 years. The debt is now being referred to as "the Muppet 22s." 03/16/12

MALFEASANTS - Growing Disease

SEC vs. Capital Creation 03/16/12 WSJ

More Than Culture Shifted On Wall Street 03/16/12 WSJ - As shown by research conducted by New York University economist Thomas Philippon, the cost of financial intermediation—what the financial sector charges the rest of the economy for its services—began a move around 2000 that would take it by 2010 to its highest level in 140 years. That is odd since the advent of information technology should have lowered costs. Worrisomely, finance still looks too big. In 2010, its share of U.S. gross domestic product was 8.5%. Last year's decline in bonuses for financial workers suggests it is probably a smidgen smaller now. But it will need to shrink more to reach the 7% to 7.5% that Mr. Philippon reckons is reasonable.

CRONY CAPITALISM

FINANCIALIZATION

Our Let's Pretend Economy- Let's Pretend Financialization Hasn't Killed the Economy 03/08/12 Charles Hugh Smith

CRONY CAPITALISM The Perfection Of Crony Capitalism: Use Regulation To Destroy Competitors 02/28/12

In the U.S. we now have the perfection of cloaked crony capitalism: corporate cartels use their vast concentrations of capital and revenue to buy the political leverage needed to write regulations specifically designed to eliminate competition. Recall that the most profitable business model is a monopoly or cartel protected from competition by the coercive Central State. Imposing complex regulations on small business competitors effectively cripples an entire class competitors, but does so in "stealth mode"--after all, more regulations are a "good thing" (especially to credulous Liberals) which "protect the public" (and every politico loves claiming his/her new raft of regulations will "protect the public.") This masks the key dynamic of crony capitalism: gaming the government is the most profitable business model. Where else can you "invest" a few hundred thousand dollars (to buy political "access" and lobbying) and "earn" a return in the millions of dollars, and eliminate potential competitors, too? No other "investment" even comes close.

Portugal, Italy, Greece And Spain Owe $20 Billion To Big Drug Companies 02/27/12 BI

 
 

 

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